­­­­­Acuité has consolidated the business and financial risk profiles of Sendoz Commercials Private Limited (SCPL) and Sendoz Impex Limited (SIL), together referred to as the ‘Sendoz Group’ (SG). The consolidation is in view of the common management, strong operational linkages between the entities and similar line of business.

­­­Established relationship with customers aided by an experienced management
The group has a long track record of operations of over three decades and is supported by the extensive experience of the director, Mr. Laxman Poddar, who possess more than five decades of industry expertise. With the promoters’ support, the group has established healthy relationships with the customers and suppliers.

Recovery in operating performance in FY25 post moderation in FY2024
During FY2023, coal prices surged due to supply shortages caused by the Russia-Ukraine war, creating a demand supply imbalance. This led to an exceptional performance in both revenue and margins in FY2023, driven by higher coal prices. Therefore, in FY2024, the group's revenue decreased to Rs. 748.47 Cr, from Rs. 968.24 Cr. in FY2023 attributed to correction in coal realisation prices and impacted volumes. However, the revenue growth bounced back in FY2025(Est.) to Rs. 1,015.95 Cr. with increased volumes. Further, the operating margin has been declining on y-o-y basis from 6.70% in FY2024 to 5.77% in FY2025(Est.) owing to subdued share of logistics activities, improvement of which in medium term shall be a key rating monitorable. Additionally, the Profit After Tax (PAT) margin declined to 2.98% in FY2024, compared to 4.50% in FY2023, primarily due to higher finance costs incurred during the year.
Acuité expects that the group's operations will improve in the medium term, supported by steady coal demand in the market and shall be a key rating sensitivity.

Moderate financial risk profile
The group’s financial risk profile is moderate marked by improvement in the net worth base, comfortable gearing and moderate debt protection metrics. The tangible net worth of the group increased to Rs. 256.91 Cr. as on March 31, 2025(Est.) from Rs. 230.48 Cr. as on March 31, 2024 due to accretion of profits to reserves. While the short term debt of the group increased significantly in FY2025, the gearing continued to remain unity. Further, the Total outside Liabilities/Tangible Net Worth (TOL/TNW) of the group stood moderate at 1.60 times as on FY2025(Est.) (1.50 times as on March 31, 2024). Also, the ICR remained comfortable at 2.47 times as on FY2025(Est.). 
Acuité believes that, going forward, the financial risk profile of the group will remain at similar levels over the medium term owing to increase in cash accruals and in the absence of major debt funded capex plans.

Working capital intensive nature of operations 
The group's working capital management remains intensive, marked by improving yet elevated gross current assets (GCA) of 208 days in FY2025 (Est.) compared to 238 days in FY2024. The improvement in GCA days was partially driven by reduced inventory days, which stood at 40 days in FY2025 (Est.)(49 days in FY2024). However, debtor days continued to remain high at 96 days as of March 31, 2025 (Est.)(98 days in FY2024). Therefore, the fund-based limits was moderately utilized at 87.58% during the six months ended March 2025, while non-fund-based limits saw a utilization of 58.78% over the same period.

Extent of support to other companies
The group on a consolidated basis has invested Rs. 47.41 Cr. (approximately 20% of the FY24  net worth) in Utkal Energy Resources Ltd. (which is a subsidiary company of Sendoz Impex Limited). Additionally, the group has given loans and advances to other entities amounting to Rs. 81.51 Cr. during FY2024. Any substantial increase in such investments or extension of loans and advances to these companies without substantial returns may impact on the group’s overall credit risk profile and will therefore remain a key monitorable.

Presence in a regulated industry
Coal traded and transported by the group find their end use by companies involved in power generation, manufacturing of cement and iron & steel. The consumers that the group caters to are under high regulation from the government. Also there are many suppliers in the coal industry catering to these end user segments. Any policy changes affecting the highly regulated coal industry or its end users will impact the financial risk profile of the group.